Charter Hall Long Wale Reit · ASX:CLW
Charter Hall Long Wale Reit — FY2024 Earnings Presentation
35 slides from Charter Hall Long Wale Reit's earnings presentation, Aug 8, 2024
Slide 1: Full Year Results 2024
Charter Hall Long WALE REIT Full Year Results 2024 ASX:CLW Charter Hall Long WALE REIT 2024 Full Year Results
Slide 2: Agenda
Agenda 1. Overview and FY24 full year highlights 2. Financial performance 3. Operational update and portfolio overview 4. FY25 guidance 5. Additional information Acknowledgement of Country Charter Hall acknowledges the Traditional Custodians of the lands on which we work and gather. We pay our respe
Slide 3: Overview and FY24 full year highlights
1 Overview and FY24 full year highlights Coles Distribution Centre Melbourne, VIC Charter Hall Long WALE REIT 2024 Full Year Results 3
Slide 4: Overview and FY24 full year highlights
Overview and FY24 full year highlights Best in class diversified real estate portfolio secured by long term leases to blue-chip tenants Arnott’s Huntingwood Bunnings Caboolture The Glasshouse (NSW Government) Sydney, NSW Brisbane, QLD Sydney, NSW % $5.8 bn 10.5 years 99.9% 4.7% 55% 99% portfolio val
Slide 5: FY24 full year highlights
Overview and FY24 full year highlights FY24 full year highlights Financial Portfolio Capital performance performance management1 Operating EPS of $762 million of transaction activity2 30.1% balance sheet gearing 26.0 cents per security portfolio curation through strategic divestments reduced from 34
Slide 6: Completion of strategic asset divestment program to continue portfolio curation
Overview and FY24 full year highlights Completion of strategic asset divestment program to continue portfolio curation Debt reduction Proceeds used to repay debt and reduce gearing Moody’s Baa1 credit rating reaffirmed Cancelling $500 million of debt facilities, providing cost benefit2 $762 mi
Slide 7: Four year real estate valuation cycle
Overview and FY24 full year highlights Four year real estate valuation cycle CLW like-for-like1 portfolio sector cap rates over the last four years 7.0% On a like-for-like basis1 across CLW’s diversified real 1 estate portfolio, sector cap rates have on average 6.5% expanded over the past two years
Slide 8: Financial performance
2 Financial performance David Jones Sydney, NSW Charter Hall Long WALE REIT 2024 Full Year Results 8
Slide 9: Earnings summary
Financial performance Earnings summary A$m FY23 FY24 % change - FY24 net property income increased by 2.5% driven by like-for-like growth of 4.7% offset by Net property income 324.6 332.7 2.5% divestment activity Operating expenses (36.7) (36.1) 1.6% - Finance costs increase driven by higher interes
Slide 10: Pro forma balance sheet
Financial performance Pro forma balance sheet A$m 30 June 2023 30 June 20242 - In FY24, settled a total of $463 million of property divestments with an additional $299 million1 Cash 19.7 22.7 exchanged with settlement to occur post balance Investments properties 3,481.5 2,474.0 date Equity accounted
Slide 11: Capital management
Financial performance Capital management1 Diversified and well balanced, long term debt maturity profile2 – A$m 100 - Execution of asset divestment and de-leveraging 70 program has strengthened the balance sheet 100 300 position with all gearing metrics reducing 100 225 70 100 Balance sheet gearing:
Slide 12: Operational update and portfolio overview
3 Operational update and portfolio overview Brisbane City Council Bus Network Terminal, Brisbane, QLD Charter Hall Long WALE REIT 2024 Full Year Results 12
Slide 13: $5.8 billion diversified portfolio of high quality real estate
Operational update and portfolio overview $5.8 billion diversified portfolio of high quality real estate Diversified across geography, real estate sector and tenant industries Key metrics June 2023 June 2024 Number of properties 549 540 Property valuation (A$m) 6,831 5,768 Weighted Average Capitalis
Slide 14: Best in class tenant register
Operational update and portfolio overview Best in class tenant register Strong and stable tenant base of government, ASX-listed, multinational and national tenants Major tenants1 22% 4% 19% 3% 13% 2% 12% 2% 5% 1% 5% 1% 5% 1% 1. Weighted by net passing income as at 30 June 2024 pro forma adjusted for
Slide 15: Focus on key defensive tenant industries
Operational update and portfolio overview Focus on key defensive tenant industries1 Defensive and resilient to economic shocks Pubs and bottle shops (23%) Government (19%) Telecommunications (13%) Fuel & convenience (12%) New Brighton Hotel, Sydney The Glasshouse (NSW Government), Sydney 242 Exhibit
Slide 16: Long portfolio WALE
Operational update and portfolio overview Long portfolio WALE1 Blue chip covenants providing long term income security 10.5 years 16.8% 11.5% 9.9% 9.3% 7.2% 6.2% 5.2% 4.5% 4.0% 3.8% 4.1% 3.7% 2.9% 2.6% 2.2% 1.4% 1.4% 1.6% 0.4% 0.4% 0.5% -% FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36
Slide 17: ESG leadership
Operational update and portfolio overview ESG leadership Achievements in FY24 Focus areas in FY25+ Net Zero Carbon by 2025 Investing in clean energy 5.3 Star NABERS Energy Active partnership with tenants Environment to reduce our Scope 3 emissions We have achieved Net Zero Scope 1 and CLW has 6.5 MW
Slide 18: FY25 guidance
4 FY25 guidance New Brighton Hotel Sydney, NSW Charter Hall Long WALE REIT 2024 Full Year Results 18
Slide 19: FY25 guidance
FY25 guidance FY25 guidance Based on information currently available and barring any unforeseen events, CLW is forecast to deliver FY25 Operating EPS of 25.0 cents and DPS guidance of 25.0 cents. Geoscience Australia Canberra, ACT Represents a distribution yield1 of Guidance of FY25 Operating EPS an
Slide 20: Additional information
5 Additional information Woolworths Distribution Centre Melbourne, VIC Charter Hall Long WALE REIT 2024 Full Year Results 20
Slide 21: FY25 operating earnings bridge
Additional information FY25 operating earnings bridge Operating earnings per security (cents) 5.6 1.2 26.0 25.0 (2.5) 0.2 0.7 (6.0) FY24 EPS Like-for-like Disposals Management Operating Finance costs Finance costs FY25 EPS guidance net property income net property income¹ fees expenses (savings from
Slide 22: Statutory earnings reconciliation
Additional information Statutory earnings reconciliation Reconciliation of operating earnings to statutory earnings A$m FY23 FY24 Operating earnings 202.4 188.0 Net fair value movement on investment properties (362.7) (626.0) Net movements on derivative financial instruments (29.6) (48.6) Straight l
Slide 23: CLW and joint venture summary
Additional information CLW and joint venture summary Investment in property joint ventures – operating earnings and balance sheet breakdown FY24 Balance Perth RDC CH DC Kogarah CH BBD Telstra $m LWIP bp Aus CH 242 bp NZ CH LEP CH GSA Total sheet Trust Fund Trust Fund Exchanges Ownership interest 100
Slide 24: CLW and joint venture summary
Additional information CLW and joint venture summary Investment in property joint ventures – operating earnings and balance sheet breakdown FY23 Balance Perth RDC CH DC Kogarah CH BBD Telstra $m LWIP bp Aus CH 242 bp NZ CH LEP CH GSA Total sheet Trust Fund Trust Fund Exchanges Ownership interest 100
Slide 25: FY24 portfolio revaluations
Additional information FY24 portfolio revaluations Long WALE Industrial & Social- Agri- - 100% of the portfolio has subject to independent Portfolio valuation (A$m) retail logistics Office infrastructure logistics Total valuation over the financial year, resulting in a net 30 June 2023 book value1 2
Slide 26: Debt facility summary
Additional information Debt facility summary1 Debt summary (A$m) Limit2 Drawn2 Maturity Balance sheet debt A$MTN (7, 8.5 and 10 year tranches) 700.0 700.0 Mar-28 to Mar-31 - Weighted average hedge maturity of 2.0 years, Domestic bank bilateral debt facility 310.0 159.4 Nov-26 benefitting from a zero
Slide 27: Portfolio enhancing transactional activity
Additional information Portfolio enhancing transactional activity CLW has delivered on its deleveraging strategy through strategic sale of assets Sale price Sector Asset Name Main Tenant (A$m) Settlement date Long WALE Retail Myer, Melbourne VIC Myer 72.01 June 2024 Redbank Plains Travel Centre, QLD
Slide 28: Geographic and sector diversification
Additional information Geographic and sector diversification Geographic diversification1 Real estate sector diversification1,2 Northern Territory New Zealand 19.3 year & Tasmania 3% 1% WALE Australian Capital Territory 5% 10.1 year WALE Agri-logistics 4% 7.3 year WALE Social Infrastructure South Aus
Slide 29: Property investment portfolio: Long WALE retail
Additional information Property investment portfolio Long WALE retail – $2.7 billion1 REIT Valuation1 WALE3 GLA4 Asset State Cap rate2 Occupancy3 WARR3 interest (A$m) (years) (sqm) Hospitality ALE portfolio (78 properties) Australia wide 50.0% 795.2 4.9% 4.5 100% 228,707 CPI5 LWIP portfolio (66 prop
Slide 30: Property investment portfolio: Industrial & logistics
Additional information Property investment portfolio Industrial & logistics – $1.2 billion1 REIT Valuation1 WALE3 GLA4 Asset State Cap rate2 Occupancy3 WARR3 interest (A$m) (years) (sqm) Arnott’s, Huntingwood NSW 50.0% 250.0 4.5% 27.5 100% 52,908 CPI + 0.5% National Archives, Chester Hill NSW 100.0%
Slide 31: Property investment portfolio: Office
Additional information Property investment portfolio Office – $0.9 billion1 REIT Valuation1 WALE3 NLA4 Asset State Cap rate2 Occupancy3 WARR3 interest (A$m) (years) (sqm) The Glasshouse, Macquarie Park NSW 50.0% 156.0 6.0% 7.6 100% 35,114 3.4% Westpac Building, Kogarah NSW 50.1% 100.2 6.8% 10.1 100%
Slide 32: Property investment portfolio: Social infrastructure
Additional information Property investment portfolio Social infrastructure – $0.7 billion1 REIT Valuation1 WALE3 Area4 Asset State Cap rate2 Occupancy3 WARR3 interest (A$m) (years) (sqm) Telco Exchanges portfolio (36 properties) Australia wide 15.0% 254.3 4.6% 16.2 100% 347,270 CPI + 0.5% Pitt Stree
Slide 33: Property investment portfolio: Agri-logistics
Additional information Property investment portfolio Agri-logistics – $225 million1 REIT Valuation1 WALE3 Building area Asset State Cap rate2 Occupancy3 WARR3 interest (A$m) (years) (sqm) Inghams portfolio (27 properties) Australia wide 100.0% 225.3 7.5% 19.3 100% 312,668 2.5%4 Total / weighted aver
Slide 34: Glossary
Additional information Glossary ASX Australian Securities Exchange Balance sheet gearing Calculated as the ratio of net drawn debt (excluding unamortised debt establishment costs) to total tangible assets, less cash CAGR Compound annual growth rate CLW or the REIT Charter Hall Long WALE REIT DPS Dis
Slide 35: Further information
Further information Investor Relations Tel 1300 365 585 (within Australia) +61 2 8651 9000 (outside Australia) Email reits@charterhall.com.au Presentation authorised by the Board charterhall.com.au/clw IMPORTANT NOTICE & DISCLAIMER This presentation ("Presentation") has been prepared by and is the s
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